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Cost Of Living Crisis Continues As Inflation Hits 30-Year High

Cost Of Living Crisis Continues As Inflation Hits 30-Year High

The cost of living crisis is deepening ahead of Chancellor Rishi Sunak's Spring Statement today

Tom Wood

Tom Wood

Hey, how about some more good financial news, folks? We're about to lurch further into a cost of living crisis because inflation has hit a new 30-year peak, meaning stuff is going to keep getting more expensive.

This news comes before Chancellor of the Exchequer Rishi Sunak makes his Spring Statement to Parliament today.

Prices rose by 6.2 per cent over the last year to February - the 12-month period, that is - seeing fuel, food, and energy costs spiralling out of control.

Even Martin Lewis - the Money Saving Expert himself - has said there is 'virtually nothing' he can do to help people anymore.

Prices are rising at such an exponentially faster rate to wages at the minute that the Bank of England believes inflation could hit double digits this year.

Food prices are on the rise.

When he arrives at the despatch box in the House of Commons today, it is thought Sunak might announce a cut in fuel duty, as well as a boost for benefits and raising of the threshold for National Insurance.

We're going to have to wait and see.

In case you're not entirely sure what all this means, we can explain it through a fairly simple thought experiment.

Imagine you're in the shop buying a loaf of bread, and that bread costs £1.

If that same loaf of bread goes up by 5p, then bread inflation is now five per cent.

Since December last year, prices have been shooting up at the quickest rate since the 1990s, and that's only expected to increase in April when the energy price cap is lifted.

In real terms, this means that the fuel bill for an average house will rise by £693 in England, Scotland, and Wales.

Oh, and there's a planned National Insurance rise that will also hit households.

As mentioned earlier, even Martin Lewis is struggling to work out what to do about it all.

He appeared on the BBC on Sunday to tell ordinary working folks that this is the worst crisis he's seen in his time as the Money Saving Expert.

Chancellor Rishi Sunak has the chance to do something about it today.

He told Sunday Morning: "I've been Money Saving Expert since 2000. I've been through the financial crash, I've been through Covid which was mitigated by some of the measures the Chancellor put in place.

"This is the worst - where we are right now, this is the worst.

"When I'm reading messages from people saying money prioritisation used to be 'do I go to the hairdressers, or do I go to the pub and have a takeaway'.

"Now it's about prioritising 'feeding my children over feeding myself'. That is simply not tenable in our society and there is absolute panic - and it has not started yet."

Speaking to Sunak directly, he said: "As the Money Saving Expert who's been known for this - I am virtually out of tools to help people now.

"It's not something money management can fix. It's not something for those in the lowest incomes, telling them to cut their bills will work. We need political intervention."

Sunak is due to address Parliament at midday today.

Featured Image Credit: Alamy

Topics: UK News, Money, rishi sunak, Politics